EANS-Adhoc: Oxygen Biotherapeutics Enters into Purchase Agreement to Sell $5 million of Unsecured Promissory Notes to Vatea Fund

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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Biotechnology

13.10.2010

DURHAM, NC, September 13, 2010 - Oxygen Biotherapeutics, Inc. (NASDAQ
& SIX Swiss Exchange: OXBT) Dr. Antoine Carlisle entered into a Note
Purchase Agreement with JP SPC 1 Vatea, Segregated Portfolio whereby
the Company agreed to issue and sell to the Vatea an aggregate of $5
million of senior unsecured promissory notes in a series of closings
between October 31, 2010, and December 31, 2010. Vatea is a party to
a securities purchase agreement with the Company, dated June 8, 2009,
and subsequently amended. Vatea is the Company´s largest
shareholder, holding approximately 13.68% of the Company´s
outstanding common stock. In addition, Gregory Pepin, a director of
the Company, is Investment Manager to the Vatea Fund.

"We are pleased to provide financial resources to Oxygen
Biotherapeutics because we believe the Company is well positioned to
move its commercial and research programs forward," said Mr. Pepin.
"As a long term investor, we thought it was natural to step in and
provide the financial support to help the company generate revenue
from its Dermacyte skin care products and advance its research
projects."

"We feel privileged to have the Vatea Fund as a long-term investor.
This financing demonstrates their belief in our strategy and
represents the catalyst required to enable us to advance on our
commercial roadmap," said Chris Stern, Chairman & Chief Executive
Officer of Oxygen Biotherapeutics.

Additional information regarding this agreement well be available on
Form 8-K filed with the Securities and Exchange Commission at
www.sec.gov.later today.

end of ad-hoc-announcement ==========================================
====================================== About Oxygen Biotherapeutics,
Inc. Oxygen Biotherapeutics, Inc. is developing medical and cosmetic
products that efficiently deliver oxygen to tissues in the body. The
company has developed a proprietary perfluorocarbon (PFC) therapeutic
oxygen carrier and liquid ventilation product called Oxycyte that is
being formulated for both intravenous and topical delivery. This
year, the company launched its DERMACYTE® line of oxygen-rich skin
care products. In addition, the company is focused on
perfluorocarbon-based oxygen carriers for use in traumatic brain
injury, decompression sickness, personal care, and topical wound
healing. More information is available at www.oxybiomed.com or
www.buydermacyte.com

Caution Regarding Forward-Looking Statements This news release
contains certain forward-looking statements by the company that
involve risks and uncertainties and reflect the company's judgment as
of the date of this release. These statements include the expansion
of research and development of the Oxycyte product line, including
Wundecyte, and the timing of the introduction of those new products.
The forward-looking statements are subject to a number of risks and
uncertainties including matters beyond the company’s control that
could lead to delays in new product introductions and customer
acceptance of these new products, and other risks and uncertainties
as described in our filings with the Securities and Exchange
Commission, including in the current report on Form 10-Q filed on
September 9, 2010. The company disclaims any intent or obligation to
update these forward-looking statements beyond the date of this
release. This caution is made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995.

end of announcement euro adhoc
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ots Originaltext: Oxygen Biotherapeutics Inc.
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Ellen Corliss

Vice President, Corporate Communications

& Investor Relations

Oxygen Biotherapeutics, Inc

2530 Meridian Pkwy, 3rd floor

Durham, NC 27713

Direct Telephone: +1 919 855 2112

Direct Fax: +1 919 806 4417

Email: e.corliss@oxybiomed.com

Branche: Biotechnology
ISIN: US69207P2092
WKN: 10728277
Index: SSIRT
Börsen: New York / Nasdaq
SIX Swiss Exchange / Main Standard